Take the 2-minute tour ×
Mathematics Stack Exchange is a question and answer site for people studying math at any level and professionals in related fields. It's 100% free, no registration required.

A sample first:

1) ProductA - purchased 100 quantity at 100 each - so the base price is \$100

2) ProductA - purchased another 100 quantity but this time at \$150 each. If we combine the two, the new base price would be \$125 correct? I just know that this is correct but I don't know it was derived. Anyone here would care to show me how?

What if we have this scenario instead?

  • Purchased 100 items for \$100 each - base price is \$100
  • Again we purchased 15 items for \$150 each - the new base price for this is I don't know..

What is the new base price for this item?

share|improve this question
add comment

1 Answer

up vote 0 down vote accepted

I doubt the question will be retained, still (it is an application of Weighted Mean):

$$((p*q) + (s*t) / (q+t))$$

Where,
p - Price of item 1
q - Qty of item 1
s - Price of item 2
t - Qty of item 2

So,

$$((100*100)+(125*100))/(100+100)) = 125$$

The solution to the second part of the question is left as an exercise to the reader. ;)

share|improve this answer
    
Re the first sentence: I do think this question is on-topic. –  Srivatsan Dec 20 '11 at 17:03
    
@Srivatsan Just thought if it was too elementary. Never Mind, in fact it is good if we address the wider audience. –  check123 Dec 20 '11 at 17:06
    
@check123 with other words the total amount of money divided by the total amount of items, isn't it? –  user3.1415 Dec 20 '11 at 17:28
    
@lef2 Well said! –  check123 Dec 20 '11 at 17:30
    
Thanks i get this now! Answer to the second part is $106.52 –  officeboi101 Dec 20 '11 at 19:27
add comment

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.